Financial Contrast: AZZ (AZZ) vs. The Competition
AZZ (NYSE: AZZ) is one of 46 publicly-traded companies in the “Electrical Components & Equipment” industry, but how does it weigh in compared to its peers? We will compare AZZ to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.
Volatility and Risk
AZZ has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, AZZ’s peers have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.
Institutional and Insider Ownership
85.8% of AZZ shares are held by institutional investors. Comparatively, 66.7% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 0.0% of AZZ shares are held by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. AZZ pays out 33.5% of its earnings in the form of a dividend. As a group, “Electrical Components & Equipment” companies pay a dividend yield of 1.6% and pay out 45.5% of their earnings in the form of a dividend. AZZ has raised its dividend for 3 consecutive years.
This table compares AZZ and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for AZZ and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AZZ currently has a consensus price target of $56.00, suggesting a potential upside of 9.70%. As a group, “Electrical Components & Equipment” companies have a potential upside of 5.73%. Given AZZ’s higher possible upside, research analysts plainly believe AZZ is more favorable than its peers.
Valuation & Earnings
This table compares AZZ and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|AZZ||$824.81 million||$143.90 million||25.15|
|AZZ Competitors||$1.91 billion||$302.41 million||-35.03|
AZZ’s peers have higher revenue and earnings than AZZ. AZZ is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
AZZ beats its peers on 8 of the 15 factors compared.
AZZ Company Profile
AZZ Inc. is a provider of galvanizing services, welding solutions, specialty electrical equipment and engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company operates through two segments: Energy segment and Galvanizing segment. Its Energy segment provides products and services designed to support industrial, nuclear and electrical applications. Its product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, nuclear safety-related equipment and tubular products. Its Galvanizing segment provides hot dip galvanizing to the steel fabrication industry through facilities located throughout the United States and Canada. It serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical and general industrial markets and various original equipment manufacturers.
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